Fair Housing

In Tennessee, a mortgage lender who charges higher interest rates to qualified minority borrowers compared to equally qualified non-minority borrowers is engaging in:

ARisk-based pricing
BReverse redlining (predatory lending)✓ Correct
CLegal market differentiation
DConventional underwriting

Explanation

Charging higher rates to minority borrowers based on race rather than creditworthiness is reverse redlining or predatory lending — a violation of the Fair Housing Act and Equal Credit Opportunity Act.

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